Thursday, August 2, 2007

Coal Stocks

Since I am a believer in the peak oil concept I thought I would have a peak at the coal stocks. You remember them don't you ? They were one of the darling sectors of the market just over a year ago and now under loved and under appreciated. I read, some time ago, an insightful piece which said the U.S. was to coal as the Saudi's were to oil, heavyweights !! For those of you who don't subscribe to 'peak oil' or want to learn more about the subject I would suggest a visit to The Oil Drum and LATOC for an introduction. Futurejacked also offers valuable insight into the subject.

This outfit is under Wilbur Ross's wing. Not a bad partner to have in my opinion but lets stick to the charts. I think we could be staring an excellent risk/reward entry point. Any violation of the old low is VERY BAD for financial health.

Just like ICO above and violation of the prior low is the kiss of death. Currently the trend line break out is coming back to kiss from the top side while not great, is not a reason to panic.

The lows of the rounding bottom are being tested again this needs to hold here.

Peabody, (great ticker BTU don't you think), needs to hold this trend line. It is the strongest of the group and if the sector can gets its sea legs about it again this will be the one to play. Gotta bet on the strongest. Good trading to you all.

2 comments:

Coal stocks are an interesting pick because it still remains attractive for long-term play. Many factors continue to drive the demand for coal upwards, therefore, increasing coal stock as a whole. I recommend this report i found, it has been very valuable to me so far...

Disclaimer

Copyright 2008 Prudens Speculari. All Rights Reserved. The content on Prudens Speculari site is provided as general information only and should not be taken as investment advice. All site content, expressed or implied herein, are for informational purposes only and shall not be construed as a recommendation to buy, sell, invest, trade, or speculate in any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) who may or may not have a position in any company referenced above. Any action that you take to buy, sell, invest, trade or speculate in any security or financial instrument as a result of information, analysis, on this site expressed or implied is ultimately your own responsibility and are committed at your own risk, financial or otherwise. Consult with your investment adviser before making any investment decisions.